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The Obama administration's Home Affordable Modification Program has been scrutinized for not reaching its ambitious goal of easing mortgage terms for millions of struggling homeowners. However, some analysts said the program has been successful in that it has slowed foreclosures, propped up home prices and generally helped the housing market from sliding further.

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Banks are offering twice as many loan modifications to delinquent homeowners under their own foreclosure prevention programs as under the Obama administration's Home Affordable Modification Program. About 78% of banks' modification programs involved reducing the interest rate and principal, according to Hope Now, a group of mortgage servicers, investors and housing counselors.

Banks are offering twice as many loan modifications to delinquent homeowners under their own foreclosure prevention programs than under the Obama administration's Home Affordable Modification Program, but the terms may not be as good as HAMP,
which reduces monthly payments to 31% of pretax income. Approximately 78% of banks' modification programs involved reducing the interest rate and principal, according to Hope Now, a group of mortgage servicers, investors and housing counselors.

Arkadi Kuhlmann, chief executive officer of ING Direct USA, explains that the Obama administration established the Home Affordable Modification Program early last year to slow foreclosures. HAMP has enjoyed limited success, however, because of the government's "counterproductive accounting rules." Mr. Kuhlmann said the rules make financial institutions reluctant to modify mortgages. "We, like other banks, are doing our best to keep people in their homes," Mr. Kuhlmann writes. "But the government has to help -- not by passing out more dollars, but by bringing some common sense to the rules of the game."

Under the Obama administration's Home Affordable Modification Program, lenders have approved converting more than 100,000 home loans from trial plans into permanent loans, according to the Treasury Department. About 66,000 struggling homeowners have accepted the offer. "Over time, as loan servicers get their systems better in shape, we'll see improvements in conversion into permanent modifications," said Assistant Secretary of the Treasury Michael Barr. "We need to pick up the amount of permanent modifications, which we believe is mostly an issue of documentation, not people not meeting their qualifications."

Under the Obama administration's Home Affordable Modification Program, lenders have approved converting more than 100,000 home loans from trial plans into permanent loans, according to the Treasury Department. About 66,000 struggling homeowners have accepted the offer. "Over time, as loan servicers get their systems better in shape, we'll see improvements in conversion into permanent modifications," said Assistant Secretary of the Treasury Michael Barr. "We need to pick up the amount of permanent modifications, which we believe is mostly an issue of documentation, not people not meeting their qualifications."